I think a good part of the problem are unscrupulous lenders that sucker people in who wouldn't normally qualify for a home. Mortgage brokers that don't tell you, or just out flat out lie to borrowers about the realities of ARM's. So, people think they can actually own their own home, and for the first 2 years, that 5% rate looks good.

They don't tell you that after 2 years they can bump that rate 2% every six months.